A Dissertation Submitted to the School of Business as Partial Fulfillment for the
Award of Master of Science in Procurement and supply Chain Management
Degree (MSc PSCM) of Mzumbe University.
Procurement is an important sector in the Tanzania economy at large. Technically, 70%
of Government budget expenditure is on procurement of goods, works and services
(PPRA, 2011).Value for Money concept is one among the main pillar of public
procurement that ensures value is achieved during procurement transactions utilizing
public funds.
The main objective was to study the effectiveness of procurement procedures towards
ensuring the achievement of value for money in public procurement. In order to
accomplish this objective, a set of specific research objective were formulated that
included finding out the factors contributing to the achievement of value for money,
determining problems hindering the achievement of value for money and identifying
challenges encountered during procurement proceedings that may affect achievement of
value for money.
Procurement aims to ensure that the right good works or services are delivered to the
right place, in the right quantity with the right quality at the right cost [price] in the right
time. In fact procurement using the framework contract has been established to ensure
that the 5R’s of procurement are obtained.
The sample of the study consisted of 30 respondents drawn from a population that was
made with members from PMU,Tender Board members,Other heads of departments and
members user departments. The researcher used questionnaire, interview and
observation to collect the data.
The researcher used Microsoft excel to make the necessary calculations of the data
which helped him to derive the frequencies and percentages which were the presented in
diagram.These findings were discussed to arrive at conclusions which included that the
Kahama District Council got the Specialised Items in the right quality and at the right
time but at a price higher than what was has had been agreed in the initial contract.